Financial Planning - Ch. 1

Jeffrey Moore
new financial products with a focus on __________ are being used
modern focus in finance has been on
1) Risk-return relationships
2) Maximization of return for risk
3) Portfolio management
4) Capital structure theory
3 things significant to financial managers during decision-making
1) Effects of inflation/disinflation on financial forecasting
2) Required rates of return for budget decisions
3) Cost of capital
a key variable in financial decisions
financial management (or business finance) is concerned with
managing an entity's money
3 functions of a financial manager
1) Allocate funds to current and fixed assets
2) Obtain the best mix of financial alternatives
3) Develop an appropriate dividend policy within the context of the firm's objectives.
sole proprietorship
single-person ownership
advantages of sole proprietorship
simplicity of decision-making and low organizational/operational costs
disadvantages of sole proprietorship